Mandatory pension contributions for the self-employed
We answer a frequently asked question – mandatory pension contributions for the self-employed. The self-employed include selbständiger and Freiberufler. Since 2019, the government has been discussing the topic of making pension contributions mandatory for the self-employed. Currently, for most entrepreneurs, contributions are voluntary. There are professions for which deductions have always been mandatory, but we are sure these lucky ones already know about it. […]
Changes in GIROKONTO service
CHANGES TO GIROKONTO SERVICE. During 2021, many banks introduced various commissions, and at the end of the year, ING and DKB “made us happy” with news. Not the best. We have collected for you the latest changes in Girocard tariffs in 2022. Girokonto, Girocard or EC-Karte is the main current account in Germany. It is credited with wages or other income. […]
SCHUFA. What do you need to know?
In Germany, all financial actions of people are absolutely transparent. We are all like “glass men”; we are under constant surveillance. SCHUFA is a commercial organization that collects information about residents, thereby protecting creditors from risk. In other words, it's a credit bureau. Every person living in Germany has a “shufa”. The most interesting thing is that information is collected only [...]
Widow's pension / Widower's pension
Widow's pension / Widower's pension (Witwen- or Witwer-Rente) HOW MUCH, HOW LONG AND WHO IS ALLOWED? Most of us have heard that in Germany, in the event of a tragic event with one of the spouses, the second receives the spouse's pension or part of it. This is true, BUT not always and not to the full extent. Let's look at the issue in more detail. But first let’s look at [...]
Taxation of investments
What tax do you have to pay on investment income in Germany? This is the most common question, as is the question about passive investing in the Sparplan ETF. Investment taxation in Germany consists of the following parts: -Income tax - 25% -Solidarity tax, if applicable -Church tax, if applicable Thus, on average, the tax on investment income will be from 26% to […]
5 rules of personal finance
Knowing how to manage your personal finances is one of the most important skills in life. Following these simple rules will help you achieve your goals and make your wildest dreams come true. 1. Track your income and expenses. After observing your cost items for a couple of months, you can learn a lot of unexpected things. There are numerous applications to help you manage and control your budget. 2. Expense planning: […]
How to withdraw money from bank cards in Germany?
It would seem a trivial question - where and how to withdraw money from bank cards in Germany? However, there are several key nuances here too. The main point is from which cards? with Girocard or VISA/Mastercard? If the latter are more universal and provide the ability to withdraw worldwide, then Girocard has a number of small advantages of its own in Germany. Current […]
Features of consumer credit in Germany
What is the maximum loan amount you can count on? Who will fail to get a loan?
PARETO LAW: How to do less and get more
This is one of our favorite laws.
Spouse income tax
TAXATION OF INCOME OF SPOUSES Initially, income tax is based on an individual principle: one taxpayer - one declaration. ⠀ This applies primarily to: 🚻 Couples whose relationship is not officially registered Widows and widowers Divorced Registered, but not living together spouses ⠀ Such the principle is called Einzelveranlagung - individual tax assessment. For some categories of citizens, in particular, spouses, a general assessment of income tax (Zusammenveranlagung) is possible. This requires compliance with [...]
WHAT ARE YOU A CONSUMER?
WHAT ARE YOU A CONSUMER?
Brands and trademarks ask the same question to gain your trust and sell more.
TAXES ON PURCHASING ONLINE STORES
PURCHASES IN FOREIGN ONLINE STORES.
HOW MUCH SHOULD I PAY FOR CUSTOMS CLEARANCE?
Do retirees pay taxes?
The pension tax system in Germany remains a focus, especially for those approaching this stage of their lives. Questions about how retirement income will be taxed, limitations and benefits are becoming important aspects of financial planning for future retirees. In this article we will take a closer look at all the exemptions and nuances that play an important role in tax policy […]
Sparplan ETF
ETF Sparplan: ETF SAVINGS PLAN - HOW DOES IT WORK? ❗ ETF Savings Plans are some of the best and most convenient ways to build assets with small installments. You can read about ETFs (Exchange Traded Funds) and brokers in a previously published article. What is an ETF Savings Plan? The Sparplan ETF is similar to a bank savings plan. You regularly (monthly for example) invest an equal amount of money [...]
GIROKONTO. WHICH TO CHOOSE?
GIROKONTO – THE MAIN CURRENT ACCOUNT IN GERMANY WHEN A JOINT FAMILY ACCOUNT IS NOT PROFITABLE ➡ Girokonto, Girocard or EC-Karte is the main current account in Germany. Salaries or other income are credited to it. ✔️This is the main account from which all regular payments are debited: – accommodation – electricity – Internet – insurance – mobile communications – […]
